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View SlideshowRequest to buy this photoTom Dodge | DISPATCHQuentin Watterson, left, and Ryan Usha, of Aramark Corp., grill hot dogs and hamburgers. The meats were for an employee picnic in Goodale Park yesterday.

Be prepared for sticker shock when buying hamburger, steaks and ribs at the grocery store for
your Memorial Day cookout.

The high demand for meat, a virus affecting pigs and drought in beef-producing states have
combined to send beef and pork prices skyrocketing heading into the summer cookout season.

“We knew this was going to happen, given the past weather conditions,” said Nate Filler,
president and CEO of the Ohio Grocers Association. “When you throw in growing demand and less
supply, the writing is on the wall.”

Beef prices are expected to rise 5.5 to 6.5 percent in 2014, the federal government forecast
yesterday. In the past year, prices have jumped 11 percent.

“It’s the biggest forecast of an increase we’re making this year, and prices already are at (or
near) record levels,” said Ricky Volpe, a U.S. Department of Agriculture research economist.

Worse, it doesn’t appear that the supply problem is going to ease soon after this week’s recall
of 1.8 million pounds of ground beef by Detroit-based Wolverine Packing Co.

And it will take time — at least a couple of years — to rebuild the nation’s cattle herd, which
was culled after drought pushed the price of feed to high levels.

“These prices are going to stay elevated and likely push higher for the rest of the year and
2015,” said Doug Hermanson, senior economist at Kantar Retail, a Columbus research and consulting
firm. “That is the concern of the consumer going into Memorial Day and the kickoff of the outdoor
grilling season. This is going to be persistent throughout the summer.”

And it’s not just beef prices that are higher.

Pork prices are up 9.4 percent over the past year. April saw a 3.2 percent increase, the biggest
one-month jump since 1996. Consumers bought more pork because of rising beef prices, and the supply
of pork has been undercut by a deadly piglet virus that began in Ohio last year, he said.

About the only important main-dish meat that hasn’t jumped significantly is poultry, which is up
just 1 percent since April 2013.

Consumers seem to be mostly adjusting to the higher prices.

“What else are you going to do if you want it? You gotta buy it,” said Don Hines, who was
shopping at Weiland’s Gourmet Market in Clintonville yesterday.

One of Weiland’s co-owners, Jennifer Williams, said people typically spend as needed for
holidays. “Especially (for) holidays like Mother’s Day weekend or Father’s Day weekend, people want
a filet, and they will pay for it,” Williams said.

Co-owner Scott Bowman, Williams’ husband, said the market is offering a bistro cut as an
alternative at $8.99 per pound; a regular filet runs $25.99 per pound. He expects that the bistro
cut will be a best-seller this holiday weekend.

“Our customers here are a little bit unique in that we already have probably the highest-quality
meat in the city as is, so they’re already used to paying a premium price for it,” he said. “It’s a
little easier for them to swallow, but it’s like anything: You want the good stuff, it costs
money."

“I haven’t seen anybody recently who has canceled their event or had to change the menu around
because they didn’t like the price or it was too expensive,” he said.

Alida Destrempe, grocery analyst for Kantar Retail, said grocers will try to ease some of the
price shock for consumers by offering lower-priced private-label products and holding down prices
of other picnic staples, including condiments and buns. Grocers also can buffer some of the
increase through fuel points that can drive down the cost of gasoline, she said.

Kroger spokeswoman Jackie Siekmann said consumers aren’t the only ones bothered by beef prices.
Her company is, too.

“There’s always a little bit of frustration because a lot of it is out of our control,” she
said.

She said the company is trying to reduce the stress of higher prices on consumers.

“One of the things we’re trying to do is work with vendors and suppliers to take advantage of
deals and specials so we can pass those along to the customer,” she said.

During weekly merchandising meetings, Kroger employees compares prices to see what stores can
do, she said. Stores also might take losses on certain items in hopes that consumers will buy
additional items.

Workers in the beef departments can advise customers how to enhance the taste of cheaper cuts of
beef.

Williams said Weiland’s tries to keep prices down as well.

“We try to absorb the prices as much as we can,” she said. “At some point, we have to raise the
cost because we can’t absorb it.”

In this era of high prices, Filler said, consumers need to watch closely for sales on their
favorite cuts of beef. “That’s when you’ve got to go in and stock up on it,’’ he said.

“At the end of the day, the customers know what they are looking for. They are going to demand
the high, premiums cuts of beef.”